Forensic Accounting Market Share, Growth, Opportunities 2031

Report Description

The global forensic accounting market size was around USD 5.14 billion in 2021 and is anticipated to reach USD 11.67 billion by 2030, expanding at a CAGR of around 8.9% during the forecast period, 2022 to 2030. The growth of the market is attributed to the increasing demand for work-from-home remote working policies.

Get Free Sample Report

Forensic accounting refers to the investigation of financial fraud, manipulations, embezzlement, money laundering, bankruptcy, insurance claims, securities fraud, tax evasion, asset misappropriation, divorces, family disputes, debt defaults, and skimming. The investigation is performed through detailed research and analysis of the collected financial and other important data. Forensic accountants are usually hired to detect and investigate financial crimes by banks, insurance companies, government agencies, police forces, public agencies, and others. Forensic accountants interpret and summarize complex business and financial matters and compile the information and findings in financial evidence reports. Forensic accounting is used under certain circumstances such as criminal investigations, litigation support, and insurance where a deep analysis of the circumstances is needed to offer solutions to them. 

There are several benefits that forensic accounting offers. The essential benefit of forensic accounting is to minimize and prevent avoidable losses. Forensic accounting solutions help companies, businesses, organizations, and firms lowering risks of exploitation to safeguard the interests of these companies, businesses, organizations, and firms. These solutions help with dispute resolution, legal assistance, and financial management. Forensic accounting solutions help companies improve goodwill, brand, and reputation. 

COVID-19 Impact

The COVID-19 pandemic affected the global forensic accounting market negatively. The lockdown, social distancing, travel bans, government regulations, and other pandemic-related restrictions resulted in economic upheaval across the globe. The pandemic affected several businesses negatively, fluctuated consumer demands, disrupted supply chains, and others. Several courts and businesses closed down during the pandemic, which decreased the demand for forensic accounting solutions affecting the global forensic accounting market adversely.  

Market Dynamics

The forensic accounting market research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global forensic accounting market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

Get Free Sample Report

Major Trends: Increasing adoption of work-from-home policies is one of the emerging trends

Several companies allowed their employees to work from home during the pandemic situation. The remote working policies proved to be a success, as companies could function well with employees working from their respective houses. The growing adoption of work-from-home policies led to the growth in the demand for automated forensic accounting solutions across the globe. 

Key Drivers: Rising adoption of digital tools for investigation drives the global forensic accounting market

Forensic accounting firms utilize several various digital tools and services to conduct investigative procedures to detect fraud or other financial crimes in client companies. Increasing usage of digital tools and services allows accounting firms to streamline the investigations and get a cohesive result. The growing adoption of digital forensic accounting tools fuels the forensic accounting market growth.

Existing Challenges: High risks associated with data privacy and sharing hamper the global forensic accounting market growth

Increasing usage of forensic accounting solutions deployed on-cloud can provide open access to any sensitive data to everyone. The easy access pose threats to data privacy and security. Publicly accessible forensic accounting tools present risks for data theft. Such privacy and security risks restrain the global forensic accounting market growth. 

Emerging Opportunities: Wide adoption of advanced technologies offers lucrative opportunities

Integrating advanced technologies such as machine learning and data analytics in forensic accounting facilitates improved results and enhanced consumer experience. Increasing demand for innovative technological advancements in forensic accounting solutions offers growth opportunities to the global market players.  

Scope of the Report

The report on the global forensic accounting market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Criminal & fraud investigations segment holds a key market share

On the basis of types, the global forensic accounting market is divided into bankruptcy proceedings, criminal & fraud investigations, risk management, and others. The criminal & fraud investigations segment is projected to register significant growth during the forecast period, owing rising adoption of forensic accounting solutions and services by government agencies and law enforcement agencies. These agencies utilize these solutions and services to detect and manage any criminal activities such as financial fraud, money laundering, and embezzlement. Growing cases of financial fraud and other such activities across the globe fuel the growth of the criminal & fraud investigations segment.  

The risk management segment is anticipated to expand rapidly in the coming years, increasing the adoption of forensic accounting solutions for protecting brand reputation. Risk management includes risk assessment, risk analysis, decision analysis, and risk control. 

Get Free Sample Report

The solutions segment dominates the market

In terms of components, the global forensic accounting market is bifurcated into solutions and services. The solutions segment is estimated to register a significant CAGR during the forecast period, owing to the increasing need for automated forensic accounting solutions across the globe. Forensic accounting solutions include auditing & accounting software, tools, and other products. Increasing government agencies and law firms investing in forensic accounting solutions drive the growth of the solutions segment. 

The service segment is anticipated to expand in the coming years, due to the growing need of several large-scale organizations to analyze huge amounts of data during financial audits. 

On-cloud segment expands rapidly

Based on distribution channels, the global forensic accounting market is segregated into on-cloud and on-premise. The on-cloud segment is projected to grow at a significant rate during the forecast period, owing to the simple process of deployment of forensic accounting services on the cloud. The vast operational capabilities of on-cloud forensic accounting solutions facilitate the expansion of the segment. 

The on-premise segment is anticipated to register constant growth in the coming years, due to the compliance needs of large as well as small & medium organizations. Several organizations prefer the on-premise distribution of forensic accounting solutions to the on-cloud distribution for the security of any sensitive data. 

Large enterprises segment holds a significant market share 

On the basis of enterprise sizes, the global forensic accounting market is bifurcated into small & medium enterprises and large enterprises. The large enterprises segment is expected to witness rapid growth during the forecast period, owing to the increasing accounting needs of large enterprises. The adoption of forensic accounting tools and services facilitates large enterprises to detect and manage any financial fraud or such crimes efficiently. 

The small & medium enterprises segment is anticipated to register a significant CAGR in the coming years, due to increasing investments in digital solutions by small & medium enterprises. Growing adoption of advanced technological and digital forensic accounting solutions by small & medium enterprises spurs the growth of the segment. 

The government & public sector segment holds a key market share

According to end-users, the global forensic accounting market is divided into law enforcement agencies, BFSI, accounting firms, government & public sector, and others. The government & public sector segment is projected to register significant growth during the forecast period, owing to the critical accounting needs that the sector holds. Forensic accounting services are used for detecting crimes such as fraud, money laundering, and embezzlement. The government & public sector adopt forensic accounting services to prevent and manage all the risks associated with such crimes. Forensic accounting services facilitate accountability and transparency in government and public organizations. 

The law enforcement agencies segment is estimated to grow in the coming years, due to the increasing cases of tax evasion and financial fraud across the globe. Law enforcement agencies are increasingly adopting forensic accounting software and services to investigate tax evasion and financial fraud cases effectively. The increasing adoption of such software and services by law enforcement agencies boosts the growth of the segment.  

Get Free Sample Report

North America to dominate the market

In terms of regions, the global forensic accounting market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is expected to register a high CAGR during the forecast period, due to the increasing adoption of innovative forensic accounting software and tools by various government agencies and firms. The high presence of financial services companies and key market players in the region boosts the forensic accounting market growth in North America.

The forensic accounting market in Asia Pacific is anticipated to witness significant growth in the coming years, as various accounting firms and law enforcement agencies are increasingly adopting forensic software and solutions in the region. Rapid urbanization and technological transformation in the region aid in the expansion of the forensic accounting market in Asia Pacific.

The forensic accounting market in Europe is estimated to expand during the forecast period, owing to the growing need for independent inquiries in the region. The UK is expected to acquire the key market share in the region. 

Get Free Sample Report